Seniors turn to reverse mortgages
The number of federally insured reverse mortgages acquired in March and April increased by nearly 20 percent since the same period in 2008.
In fact, Inside Mortgage Finance says the government insured nearly 11,700 reverse mortgages — the biggest figure since the government-backed program began in 1990.
And, findings indicate that more and more seniors are turning to reverse mortgages in an effort to boost retirement savings. This is perhaps a result of more seniors now qualifying for the savings vehicle since Congress in February raised the maximum home value that seniors can borrow against to more than $625,000.
That bill also capped reverse-mortgage origination fees at 2 percent on the first $200,000, and 1 percent on any amount over that — with fees not to exceed $6,000, according to reports.
Do you recommend reverse mortgages to your senior clientele? How would you encourage an older client to use this savings vehicle? Please leave your thoughts below.